Dynan, Karen E.; Kohn, Donald L. - Federal Reserve Board (Board of Governors of the … - 2007
. Households have become more exposed to shocks to asset prices through the greater leverage in their balance sheets, and more … exposed to unexpected changes in income and interest rates because of higher debt payments relative to income. At the same … the 1980s to an average of 1.0 so far this decade. In this paper we explore the causes and consequences of this dramatic …